How to Write a Quote for a Service Job

1. What is a Quote? 
2. What is the Difference between a Quote and an Estimate?
3. What to Include in a Price Quote?
4. How to Quote a Price for a Job?
5. Conditions in the Market
6. Job Costs
7. Pricing Model
8. Can I Use a Quote Sheet Template?
9. How to Send a Quotation to a Customer
10. How to Email a Quote to a Customer
11. How to Create a Quote with Joblogic

Before a job can even be started, one of the biggest challenges you’ll face is figuring out how to price your service management software. Service quotes for work may seem like a simple formality, but it can be an area that you need to put some effort into.

When it comes to quoting, it’s best to start by defining your overall pricing strategy.

For example, is this a fixed price job or based on an hourly rate? Perhaps there are extra expenses you need to consider, such as travel or vehicle costs. Pricing is a constant challenge in the world of field service since it’s never an exact science. However, the more specific you can make your quote, the better.

In this guide, we’ll comprehensively go through the ins and outs of service quotes, breaking down all of the factors that go into building a quote for your specific industry.

What is a Quote? 

A service management software quote, also referred to as a sales quote, is a written agreement to provide work for an agreed-upon price. You must present this information in writing because it is considered an official record of the agreement between you and your client.

It’s your way of presenting all costs associated with the work and how it’s broken down. For companies that work on estimates, such as those within the HVAC and plumbing industries, these will be based on a time and materials estimate and other specified conditions.

What is the Difference between a Quote and an Estimate?

When it comes to service work, quotes and estimates are used interchangeably and many are under the impression that they are the same but with different names. However, there is an important difference between them.

A price quote is an offer you present to your client for services rendered at a specific price (including costs) with no contingencies, much like an invoice. Once the contractor and client have accepted this price via a signature, the contract is considered binding.

On the other hand, an estimate usually presents these same conditions but provides less of a guarantee that the price will remain fixed. It is at best an educated guess, and at worst, a starting point for negotiations.

While there is strictly no set format you need to follow, you should know what information to include and how it will be presented. Having an easy-to-digest quote will help your client make more informed decisions and ensure you get the job.

What to Include in a Price Quote?

You should always start with the basics, such as your company’s name and contact information. The information thereafter is where many businesses trip up, missing out important details associated with their service.

Follow these guidelines to make the most of your quotes:

Description of work and services – a breakdown of what the client will be receiving

Price – all costs for parts and labour along with any additional fees or expenses. It’s a good idea also to include any guarantees you offer, such as warranties or work quality.

Payment terms – when and how the client needs to pay for this service.

Work schedule – this includes the length of time that you are providing these services for.

Confidentiality agreement – required by some customers to protect their information

Variation – A section where you list the different rates applied if specific add-ons are requested.

Duration – Every price quote has a time frame.

Customer Signature – both yours and the client’s, as well as any added contacts for specific departments. This ensures all parties have a record of the agreement

Additional Information – this is often used for legal purposes, such as disclaimers and terms & conditions.

If your quote is missing any of these components, it may be considered incomplete and not legally binding. Your client will need to ask for the missing information to ensure they are getting what you have promised them with no surprises down the line i.e. hidden costs.

How to Quote a Price for a Job?

Before creating a quote, it’s crucial to identify critical factors involved in your industry and market. Failing to keep up with essential details such as new law regulations, industry changes and more, will leave you at a disadvantage.

Below are factors every business should take into account when creating field service quotes for their clients:

Conditions in the Market

The first thing you need to do is evaluate the current market for your service.

Has the economy improved or declined? What’s the demand for your service right now among clients? Are there conditions impacting your trade, such as new tax laws, labour shortages or rising material costs?

Answering these not only helps you create accurate service quotes, but they help determine what pricing model is best for your company.

For instance, if the overall market is driving down prices on your service and you choose to maintain or raise yours, it may not only affect the volume of clients you receive, but it could be seen as dishonest and unprofessional. On the other hand, if there is a much greater demand for your services and the market is raising prices, you have a great opportunity to increase your income.

Once you’ve thoroughly evaluated the market for your service through researching, you can then determine how much you will charge for the work.

Job Costs

Job costs are the costs that you incur when completing a job for your client. In addition to your expertise, clients will have to pay you for your time, materials, and other resources required to complete their project.

Let’s break down each cost to understand better how your quote is created.

Materials – any materials required for the job, such as building materials, automotive parts or computer hardware

Labour – the time it will take you and/or your employees to complete this work and how much you want to bill for that period

Transportation – you may add transportation costs to the job. This can include car mileage to the site and tolls along the way

Other Expenses – any expenses you will need to cover for this job, such as fees and taxes related to the project.

The final factor in determining your quote is the size of the job. If you have a large project, such as building a new house or cabin, it will cost more than a smaller project. Larger job’s generally require more workers, equipment and materials, as well as more investment.

Pricing Model

When establishing a quote, pricing strategy is unique to every business and will depend entirely on your goals.

Some organisations, for example, will adopt cost-plus pricing, adding a set percentage on top of their costs to make an additional profit. Others will price their services based on their competitors and what the going rate is. Ultimately, there isn’t a wrong way to determine your prices as long as it works for your business and clients.

There are many different types of pricing models for service businesses – let’s go through some of them:

Fixed Price – This is the simplest way to set prices, where you charge a flat rate for this work that does not change based on scope or timeline. You do need to be able to estimate the cost of this work, however, accurately.

Margin-Based – In a margin-based pricing model, you price your services based on the profit you want to make. You can achieve this by adding a set percentage or margin on top of your costs.

Competitive – This pricing model sets your prices based on what your competitors are charging. This is an excellent way to ensure you get the best price possible, but make sure that your competitors aren’t undercutting you by too much.

Whatever pricing strategy you adopt, you need to ensure your field service quotes are accurate and include all of the costs associated with this work. Always be transparent about your expenses and don’t inflate them. If you have employees, remember to include their salary in the quote as well.

Can I Use a Quote Sheet Template?

A quotation template helps create quotes for your service work, saving you time and effort while enhancing your invoicing capabilities. 

When your company is servicing multiple clients weekly, it can be time-consuming to create each quote individually. A quotation template is already formatted, making it easy to fill out the details of each client and job, saving you time in the long run.

You can also include a logo or other branding elements on these quote sheets, helping to create consistency across your business and convey confident professionalism. Once you have made your quote sheet, all of your field service quotes can be printed out or emailed and given to clients who are interested in your service.

How to Send a Quotation to a Customer

Once you have your quote ready, there are several ways to send it out to potential customers.

Email Quotes – If the client has given consent for email correspondence, this is a good way to get in contact with them and provide an electronic version of your quote. You can use any standard document viewer or editor that attaches documents as attachments.

Paper – If you want to send a paper copy of your quote, this is the easiest way. You can simply print out copies and mail them via standard postage if required.

Depending on what type of company or industry you are in, there may be other ways that clients prefer for quotes to be sent over to them. For example, if they are a local client, you can visit their establishment or home and hand it over personally. In-person visits are a great way to make your first impression count, simultaneously allowing you to answer any questions they may have.

How to Email a Quote to a Customer

Email quotes are one of the easiest ways to share your pricing with customers and can be done using any standard email program.

Once you have created your quote, simply include it as an attachment in an email to provide all of the information that they need at once. You could also include a link to your website where they can find the quote and download it directly from there.

When structuring your quote, there needs to be a hierarchy of information that is presented. A standard layout consists of the following:

Header: This includes your company’s details like its name, contact number, payment terms, tax registration number and your client’s name.

Main Body: A description of the work you provide, including its details and requirements. This should break down the project’s total cost, including costs for materials, labour, and any other expenses.

Footer: This will show your price total for all expenses involved, along with the quote’s validity and tax amount. Your client’s signature and your own should also be included here.

How to Create a Quote with Joblogic

Joblogic offers a free quote template that you can use to create service quotes for work. Our easy-to-use template simplifies the process by breaking down the information you need to include and structuring it to be easy for clients to read through.

You can make a quote in just minutes with Joblogic, saving time that could be put towards other parts of your business or spending more quality time with family and friends! Don’t forget to add your logo to help convey your brand and ensure consistency across your marketing material.

In addition to our free quote template, our software enables your company to create, store and manage quotes within Joblogic so that they are always available to you and your team. This is a cost-effective solution that helps you build up a history of work completed, helping you track previous jobs and compare the quotes you have sent to customers over time.

If you’re looking for ways to make your business more efficient and profitable, Joblogic is the software you need! Book a free demo today to see how we can help you achieve your business goals.